Coming back onto the real estate market , this has had an immediate effect . When past markets may have seen a slowing of various indicators , since February 2022 there has been a quick and considerable decline in the number of sales that have taken place in the market . While there is increasing evidence of falling prices , the combination of increasing interest rates , an expectation of high inflation , and concerns around the economy have had a compounding effect on the real estate market .
Changing outlooks for sellers have resulted in adjustments of price expectations to meet the buyer ’ s expectation of price . The supply of property has lifted more than 45 per cent in the last 12 months ; emphasised in the last quarter with an increase of 36 per cent more properties available for purchasers to view . When you add on top of this that there are fewer sales in the market , this has meant a record number of properties on the market , which is 70.1 per cent higher than the same time last year . Supply has increased and demand has dropped , resulting in fewer sales but also sellers realigning their sale price expectations .
much more balanced market in favour of those seeking value by comparison . Those who are positively marketing their property can expect reasonable buyer depth to respond to properties considered reasonable value .
How is Ray White New Zealand responding to the market changes ? It is more important for us to be able to convey information on the active market and the properties that are in competition to listings coming onto the market . Today , while the buyer is important , most competition comes from similar properties . While factors including location and build quality are high on the preferred wants of buyers , comparison properties and value sit considerably higher given the amount of property on the market .
While auctions continue to be the preferred method of marketing , it is more difficult to encourage under the hammer sales . In doing so , we believe that auction provides transparency for buyers to transact , whether that be before the auction , at the auction , or after . While success rates have changed with under hammer results , the auction method of marketing is still the most successful and in market conditions that are potentially declining remains relevant for sellers to consider .
The above graph shows the number of properties currently on the market is 5,432 , while at the same time last year we had 3,182 properties available . This allows purchasers not only to take their time but also to realise there are value comparisons in the market where 12 months ago there were not .
The market certainly has been different in the last two years . Today we sit in a more normalised market rather than the comparisons of 12 months ago . While it ’ s easy to suggest that prices are falling and market supply has increased , pricing prior to the pandemic and stock levels were much more normalised . And while prices still have a much higher value than two years ago , the normalisation of stock levels is closer . This is likely to continue where across New Zealand there will be approximately 25,000 properties available for sale with a long-term average inventory of approximately 12 weeks . This would indicate a
The above graph shows scheduled auctions . The yellow line indicates the current number of auctions scheduled , which is 18 per cent lower than the same time last year . However , this is still a considerable increase from two years ago . There is a strong belief that the auction method of marketing will remain at the forefront of success rates , although in an environment of decreasing sales there will also be a decrease in the number of auctions successfully sold under the hammer .
Ensuring buyers have borrowing and loan pre-approval is an important part of the transaction process . Ray White is fortunate to have a direct relationship with the Loan Market that can provide all of the necessary updates and processes for buyers in the market .
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